Where WMS fits in the drive to reduce cycle times
Warehouse management systems are being integrated with other software packages in efforts to reduce the total time from order placement to product delivery.
By Gary Forger -- Modern Materials Handling, 7/1/1998
From all indications, warehouse management systems (WMS) are at the threshold of their next significant stage of development.Until now, WMS software has been entirely focused on activities within the four walls of the warehouse. As the graphic on this page shows, WMS manages inventory, people, and equipment resources to expedite order fulfillment and shipment.
That will continue to be WMS' core strength. And end users will continue to benefit from real-time access to inventory, higher inventory turns, and increased order fill rates as well as shipping accuracies, to name some of the gains possible with these software packages.
But there is also the potential for even greater supply chain efficiencies when WMS is fully integrated with other types of execution and planning software. These include transportation management systems (TMS), order management software, manufacturing execution systems (MES), and advanced planning and scheduling (APS) software.
Traditionally, these packages have operated as stand-alone software. Unfortunately, that independence also created islands of information. The general consensus now seems to be that links must be made between the software packages to maximize supply chain efficiencies.
The potential, according to Advanced Manufacturing Research (AMR) is enormous. AMR projects a 45% combined annual growth rate for these major types of supply chain management software through the year 2001. By then, says AMR, total licensing fees will be $2.7 billion annually.
Linking WMS with other software
Perhaps more than anything else, these developments are a reflection of end users' needs to better integrate all segments of the supply chain regardless of industry.
Manufacturers and distribution operations alike are under severe pressure to deliver higher volumes of goods in more customized forms on shorter notice. Meanwhile, the velocity of these demands continues to spiral upward. To make matters worse yet, every effort is being made to contain inventory levels to the extent that, whenever possible, inventory does not arrive until after the order is received. That doesn't leave much room for error or sloppiness.
The value of supply chain efficiencies should not be underestimated, said Rick Wilkins, director of marketing for Robocom at the recent D/C Expo event. He fully expects that future buying decisions in many industries will be significantly influenced by the relative efficiency of a company's supply chain.
The push is clearly on to re-cast the various types of supply chain software to provide just those needed efficiencies.
Most WMS packages are now being integrated with transportation management systems (TMS). The end result is an execution software solution that extends WMS' control beyond order shipment to freight management, over-the-road carrier selection, routing, and related activities.
On the other side of the supply chain, WMS is beginning to be integrated with order management software capable of managing order flow. This is an important step beyond simply downloading the day's orders to the WMS which then directs order fulfillment.
Other suppliers are working toward directly linking production software such as manufacturing execution systems (MES) with WMS.
And there are also efforts underway to integrate WMS with advanced planning and scheduling (APS) software. The goal is to maximize execution efficiencies in manufacturing and distribution by improving upfront planning and scheduling. This can be done with APS packages that accurately anticipate demand before orders are placed.
The end result for all of these ventures will be a significantly improved ability to put the best data in front of the people making the decisions. Current expectations are that the idealized solution will start with APS software, include order management and production systems (where applicable), and finish with WMS and TMS software that fills and delivers orders.
Initial efforts are for the most part in their early stages, and only a few packages are available today. Furthermore, there is no single package available that links all segments of supply chain management software. Nevertheless, there are high expectations for the future. Several suppliers are literally betting the company through corporate alliances and mergers on the prospects.
These are only the initial forays into the new integrated world of supply chain software. Expect to see more realignments of suppliers and a steady stream of integrated supply chain management software solutions in the near future.
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